Question: 1.- How does a bond issuer decide on the appropriate coupon rate to set on its bonds? Explain the difference between the coupon rate and

1.- How does a bond issuer decide on the appropriate coupon rate to set on its bonds? Explain the difference between the coupon rate and the required return on a bond. 2.- What is the difference between the term structure of interest rates and the yield curve? 3.- What is the relationship between the price of a bond and its YTM? 4.- What are the three factors that determine a company's priceearnings ratio? 5.- Under what two assumptions can we use the dividend growth model to determine the value of a share of stock? Comment on the reasonableness of these assumptions. 6.- Why might a company choose not to pay dividends?

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